Government has projected $350 million exports of Information Technology (IT) for upcoming financial year 2010-11, which would require considerable investment and government support.
According to the annual plan 2010-11, venture capital funds will be encouraged by providing them with one window facility to start their business in a bid to enhance exports.
In marked contrast to Pakistan’s performance India’s IT exports were estimated at $48 billion, while Korea and Ireland IT exports in 2008-09 were estimated at $97 billion and $24 billion, respectively. To increase IT exports local entrepreneurs and investors need to be attracted through incentives and infrastructure support.
According to the plan, development of IT incubator to establish IT companies and venture capital funds will be encouraged by providing them with one window facilitation to start their business. A government backed programme to establish IT incubator will also be designed.
To attract large international business, the local IT companies need to strengthen their expertise, augment their capacity through clustering as well as mergers on successful business proportions. According to plan, the merger acquisition and joint ventures with foreign software houses will help in the promotion of software development, software business and transfer of technology.
“A proper mechanism to incentivize the system will be put in place by the government enabling the local companies to transfer into world-class companies,” the government revealed in a plan.
International businesses now focus on adopting best practices to ensure delivery of quality services and products. The local IT companies should be encouraged in this direction. For this purpose, incentives such as tax concessions, rebates shall also be given to the local IT industry for achieving higher CCMI level certification, opening offices overseas and earning foreign exchange from software export.
A multimedia internet city and knowledge village in Pakistan on the pattern of Silicon Valley US and internet city in Dubai will help to attract large software companies and multinationals to build their offices locally. These places would be treated as Tax Free zones. This will act as a hub for value added activities.
You can download Government’s Annual Plan for Information and Communication Technologies for Year 2010-2011 by clicking this link (PDF File – 570 KB)